HAMBURG, Germany -- Volkswagen has signed a governing agreement with its largest shareholder, Porsche, with the aim of laying the groundwork for a mutually beneficial relationship, the company said on Friday.
When asked, a spokesman for VW confirmed that the management boards of both companies had signed the accord.
VW pledged on Oct. 11 that it would hold Porsche at "arm's length", reserving the right to maintain control over its product planning as well as to enter into other partnerships with rival carmakers such as DaimlerChrysler.
Porsche said in early October that it had secured a further 8.3 percent in the world's fourth-largest carmaker, bringing its total stake to 18.5 percent. It has an option to buy an additional 3.4 percent.